I have a dataset with European and non-European countries. I define "europe" as:
Code:
gen europe=1 if Countrycode=="AT"|Countrycode=="BG"|Countrycode=="CH" replace europe=0 if europe==.
Code:
gen noneurope=1 if Countrycode=="AU"|Countrycode=="BR"|Countrycode=="CN" replace noneurope=0 if noneurope==.
Then I generate an investment score, "score", which is the aggregate score of all investors in the same country:
Code:
bysort id year :egen score_europe = total(score) if europe==1 bysort id year :egen score_noneurope = total(score) if noneurope==1
Code:
reg AEM score_europe score_noneurope ROA MB growth leverage i.industry i.year i.country_id ,cl(id)
Thanks!
0 Response to no observations error for regressing two IVs that are mutually exclusive
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